Britain faces 'global oil shortage and soaring energy bills' this winter after Iran and Ukraine wars

Britain faces 'global oil shortage and soaring energy bills' this winter after Iran and Ukraine wars Spiralling conflict in the Middle East and further disruption to global supply of oil and gas is set to see energy bills and petrol prices soar once again over the coming months Britain is set to face soaring electricity bills and knock-on effects from global fuel shortages this winter thanks to the conflicts in the Middle East and Ukraine. While the UK's energy price cap is already set to rise by 4% on October 1, new forecasts from Cornwall Insight and Bloomberg Economics warn of a massive 25% jump coming in January. This would add roughly £427 to the average annual UK household bill, pushing it over £2,150 for the first time since 2023. Britain is highly exposed to global wholesale gas prices, which have surged to a near four-year high on the back of escalating geopolitical tensions in the Middle East, because we import most of our energy. Disruptions include the ongoing blockade of the Strait of Hormuz by Iran, now in its seventh month, and the attack by Houthi rebels on Saudi Arabia's East-West pipeline on September 11, a major supply of crude oil to Europe. Energy giant Saudi Aramco informed European refiners this week that they would not be receiving any oil next month as a result of the attack, adding to fears of severe supply shortages. Qatar has meanwhile confirmed it will not be lifting its pause of shipping liquefied natural gas, due to fears over maritime security. Ongoing pressures from the Ukraine war have also kept gas and electricity prices high, with warnings of further potential spikes this autumn as Putin plans a mass mobilisation and potential escalation against NATO allies. Susannah Streeter, chief investment strategist at Wealth Club, said: "European gas storage levels are below the seasonal average, leaving the market vulnerable as winter months approach. "Qatar’s extension of its suspension of shipments means that those levels can’t easily be replenished, with supply concerns amid high demand pushing European and UK gas prices back up to levels not seen for three and a half years." Petrol stations run dry in France In France, authorities said on Friday that one in nine petrol stations were out of at least one type of fuel amid the recent price spike, protests at major ports and cost-conscious consumer behaviour. TotalEnergies had promoted a price cap of €1.99 (£1.70) per litre at its stations - meaning motorists queued for hours when costs hit €2.39 to €2.50 at rival forecourts, emptying supplies. The same day, Emmanuel Macron said he had called a meeting of G7 nations to discuss the energy crisis and release emergency strategic oil reserves. He said: "I will convene a G7 to move forward on improving coordination on the level of stockpiles, with greater cooperation on exports and production capacity." No such shortages have been reported in the UK, though experts warned this week that prices at the pump are back on the rise after levelling off in recent months. Diesel is moving rapidly towards the £2 per litre mark, with 236 petrol stations already selling diesel above the threshold and a further 633 stations pricing at 199.9ppl to remain below it. The average price for standard unleaded petrol in the UK is currently 172.0p per litre.